Phoenix Business Journal: Myth vs. Fact: The Reality About Tipped Employees and Minimum Wage

Shayna Balch was a guest blogger for the Phoenix Business Journal on June 23, 2014.

Because of the ongoing debate regarding minimum wage in the U.S., many employers and employees find themselves confused as to what is and is not legal when it comes to paying tipped employees. Below are four of the most common fallacies we see when dealing with labor disputes.

• Myth 1: The minimum wage does not apply to employees who receive tips.
• Myth 2: Employers only have to pay employees who receive tips the “tipped minimum wage” for hours worked.
• Myth 3: Employee who are required to perform preparatory and post-work duties, during which they do not earn tips, does not impact their status as a tipped employee.
• Myth 4: The employer has complete discretion to require its employees to pool tips.

Click here to read the full article and find the real truth behind these myths.